By Ashley Robinson, Commodity News Service Canada
Winnipeg, Jan. 18 (CNS Canada) – The ICE Futures canola contacts finished the day stronger, despite continuing concerns about China.
There is ongoing concern from traders that China/Canada relations are affecting canola exports, with China lowering purchases.
The latest Canadian Grain Commission data this morning showed canola exports are at 4.628 million tonnes, down from 5.057 million tonnes at this time last year.
Chicago Board of Trade (CBOT) soybean, oil and meal contracts were all stronger. While canola found support from the soy complex, it lagged in value compared to soy.
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About 23,251 canola contracts traded, which compares with Thursday when 14,983 contracts changed hands. Spreading accounted for 14,200 of the contracts traded.
Bloomberg reported this morning that China offered a six-year boost in imports from the United States during trade talks earlier in the month. The U.S. had a trade deficit of US$323 billion with China last year; this deal would aim to reduce that annual trade difference to US$0 by 2024.
The Wall Street Journal published a story Thursday which said the U.S. Treasury Secretary Steven Mnuchin had proposed lifting the tariffs on Chinese imports in an effort to speed up negotiations.
China and the U.S. will be meeting later this month to continue trade negotiations. The 90-day truce is set to end at the end of February.
CBOT corn prices finished the day mostly stronger, finding sympathy support from the soy complex.
Indonesia has delayed its deadline for their tender of 30,000 tonnes of corn.
Wheat futures in the U.S. finished the day mixed, with most of the major contracts stronger.
The wheat markets have been finding support from rumors of more wheat being sold to Asian countries.
Philippine importers bought around 85,000 tonnes of feed wheat earlier this week.
There are reports that Russia’s Agriculture Ministry is planning to regulate domestic grain prices in an effort to maintain stability on the market.
